Advice! Transitioning to Multifamily

[Shafi Noss]

Hey there,

I'd like to get your opinion on a strategy for transitioning into multifamily. A partner and I will have about 300k (partly from us partly from investors) to invest come January, we both have some experience with single family, but value-add apartment buildings are our end goal. We haven't done a multifamily deal before so we're thinking of buying a 5-10 unit, high cap rate multifamily that requires little value add, learn the basics, get a bit of a track record, and then go bigger on our next project.

What do you think? Is it a good use of money? What should we offer investors since there is no value add? Is it a good strategy? Any other thoughts or advice?

--Shafi

[Tj Hines]

@Shafi Noss

What do you think? (I think you guys are on the right track)

Is it a good use of money? (Yes, especially if you guys are looking to scale at some point.Starting with a 5-10 unit will also give you management experience as you go bigger)

What should we offer investors since there is no value add? (This all depends on your network and what is beneficial to them. Only you would know this answer. Are they invested in CDs, IRAs, 401Ks? Once you find this out, you should better know how to structure with your investors)

Is it a good strategy? (I concur)

Any other thoughts or advice? (Take massive action and network. There are ton of multifamily boot camps being offered across the country on any given weekend. You can make solid connections there with operators who are successful and come become beneficial to you)